Saturday, July 24, 2010

CapitaRetail China's net property income up 8.8%

SHOPPERS in China kept up their pace of spending and helped CapitaRetail China Trust (CRCT) deliver robust results in the second quarter.

The property trust saw net property income rise 8.8 per cent year-on-year to 97.2 million yuan (S$19.7 million) as revenue increased at its busy malls and property expenses decreased.

Distribution per unit was up 6.7 per cent at 2.07 cents from 1.94 cents a year ago, while distributable income rose 7.3 per cent to $12.9 million. Payouts will be distributed on Sept 24.

Gross revenue rose 3.7 per cent to 145.1 million yuan year-on-year, but fell 2.8 per cent in Singapore dollars because of the local currency's rise against the yuan in the three months to June 30 compared with a year ago.

Mr Victor Liew, chairman of CapitaRetail China Trust Management, said resilient domestic consumption is still driving growth in China, whose economy is expected to grow 10.5 per cent this year.

'We continue to benefit from the Chinese government's stimulus measures to boost domestic consumption and maintain stable and sustainable economic growth,' he said.

CRCT said tenant sales grew 28.8 per cent while shopper traffic was up 14.4 per cent over levels last year. Occupancy rates are at 96.1 per cent.

The trust's portfolio consisted of eight retail mall properties in five cities worth 5.8 billion yuan as of June 30.

Net asset value per unit as of June 30 was $1.13. CRCT's units closed up one cent at $1.26 yesterday.

Separately, Ascott Residence Trust reported a 4 per cent rise in distribution per unit to 1.87 cents in the second quarter from 1.79 cents a year ago.

Distributable income was up 5 per cent at $11.6 million while revenue rose 3 per cent to $44.4 million. Payouts will be made on Aug 27.

Ascott Residence Trust Management's chief executive, Mr Chong Kee Hiong, said the rise in revenue was led mainly by a better performance in China and Singapore arising from higher occupancies and rental rates.

'The level of business activities in Singapore has increased in line with the strong economic growth, resulting in higher demand for serviced residences,' he said.

Ascott Reit's portfolio has a total asset value of $1.59 billion, comprising 38 properties with 3,644 units in 11 cities across seven countries.

Net asset value per unit as of June 30 was $1.38. Ascott Reit's units closed down one cent at $1.23 yesterday.

Source: Straits Times, 24 Jul 2010

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